What Is The Future Of Blockchain In Lending? 13 Experts Share Their Insights

  • 26 June 2019
  • Sam Mire

Imagine a world where a typhoon-ravaged Asian village can obtain same-day funding from an American donor.

This type of decentralized lending is possible with help from the blockchain. As a borderless payment technology, the blockchain’s potential for financing underserved populations is tantalizing, though such platforms remain largely theoretical.

But such use cases may inspire new types of loans in the near future. Microloans can help extend credit responsibly to those in need of some cash. This wouldn’t involve the exorbitant interest rates associated with payday loans, either.. These microloans may be issued in short-term or pay-as-you-go formats depending on the borrower’s needs.

Some also see tokenized assets altering the lending landscape. If a yacht, piece of art, or a home could be fractionally owned by many entities,  it would be a gamechanger for lenders, borrowers, and debt investors.

Aside from these specific cases, blockchain will reduce clutter and boost efficiency in lending processes. The minutiae of onboarding, loan origination, and oversight may all fall upon blockchain systems, freeing human employees to be more effective and innovative in the rest of their work.

1. Antoni Trenchev, Co-founder of Nexo

Antoni Trenchev“We are seeing rapid tokenization of the world, which will see stocks, bonds, commodities, fine art, and real-estate being brought to the blockchain for fractional ownership, investing and trading. This is the largest and most important trend as it will allow unprecedented liquidity for some asset classes and also will integrate parts of the population into the economic cycle that have thus far been largely left out.”

2. Blake Cohen, Co-founder of SALT Lending

Blake Cohen“The future of blockchain in lending is the diversification of product offerings. Customers at both the consumer and enterprise levels want the ability to choose from an array of loan products, as well as have the option to collateralize many different types of assets. As an industry, we need to focus on building products that meet the various needs of potential and existing customers.”

3. Anil Awasthi, VP, Global Head of Retail Banking, Virtusa

Anil Awasthi“From a lending business perspective, blockchain holds a bright future. For unleashing its full potential, a number of challenges need to be addressed such as the adoption of private vs public blockchain, information, alignment to regional regulatory requirements and acceptance of it among the stakeholders in the lending business. Loan Originations processes would see maximum adoption, specially credit approvals, payment and collections would be areas to explore with blockchain leveraging smart contracts. In the future, we would also see artificial intelligence playing a role along with blockchain to bring the greater benefits to the lending business.”

4. Alex Mashinsky, CEO of Celsius Network

Alex Mashinsky“The future is bigger than all the trading and speculation we see today, lending and interest income are the killer DApps of the blockchain and will spread MOIP (money over IP) to every person on the planet.”


5. Darshan Bathija, CEO and Founder of Bank of Hodlers

Darshan BathijaBlockchain lending companies are here to stay, as long as there are people who hold cryptocurrencies and want to bank on the blockchain. When Satoshi Nakamoto released the white paper for Bitcoin and blockchain technology, he (they) did so with the idea of creating a system of parallel banking. What we’re seeing today is the realization of that idea, especially for people who are averse to, or want an alternative to traditional banking and financial systems.”

6. Alex Faliushin, CEO and Co-founder of CoinLoan

Alex Faliushin“It’s all about the digitization of new asset types that will make them globally available. It’s also about accessible and straightforward rules for all players on the financial market. We also hope that more and more countries will support and implement blockchain technology at the national level.”

7. Joe Kelly, CEO and Co-founder of Unchained Capital, Inc

Joe Kelly“Better lending rates as the market grows and more capital comes to the space to lend.”




8. Martin Ploom, CEO and Co-founder of

Martin Ploom“Emergence of the crypto-credit-money. Every lender will become a “commercial bank” and will create standardized credit coins in the same way as banks are creating standardized fiat credit money today (97% of money today is created in the commercial banking lending process). Crypto-Credit-Money will result in the disintermediation of the commercial bank lending. It's about creating transferable, tokenized, protected, collateralized Credit Coins. When this gets to the mainstream, then commercial banking as we know it is finished.”

9. Tomas Medeckis, CEO of Welltrado

Tomas Medeckis“As the lending market (especially P2P lending) is growing fast, we will see higher competition in this field. In the next five years, the P2P lending market is forecasted to reach market cap of 1 trillion USD. It means that P2P platforms will look for ways to improve lending and scoring processes. Blockchain will play a major role in credit scoring and cross border transactions (where speed and lower costs are necessary).”

10. Anzhelika Osmanova, CEO of Lendonomy

Anzhelika (Lika) Osmanova“Blockchain is made for environments where trust isn't guaranteed, and lending, especially if we are talking about peer-to-peer lending is an example of such an environment. Adopting blockchain for lending is going to be a natural evolution of the industry. It will take time until the legislation is going to be ready to regulate blockchain-based lending companies in a rational way, but we'll get there with time.”

11. Vitaly Bahachuk, Co-founder of Bloqboard

Vitaly Bahachuk“Borrowing against tokenized real-world assets. Today native blockchain assets are the only offerings in the blockchain lending ecosystem. The challenge is to get assets on-chain but this will allow for shorter funding times and potentially lower interest rates.”


12. Brian Nolan, Co-founder of Finteum

Brian Nolan“Institutional loans will require fewer support processes to initiate and monitor; they won't settle value T+2 or longer and will take less time and effort to execute and manage.”



13. Ed Handschuh, Co-Founder and CEO, 1Konto

Edwin Handschuh“The future of blockchain lending is pervasive decentralized lending platforms. These platforms will sprout up to serve underserved markets, ie. the unbanked, micro loans, community-based lending and even compete against more traditional lenders in mortgage and business loans. The clarity blockchain technology brings will allow for less friction in loan origination and repayment causing increased capital into the direct lending sector. Investors will be able to choose their direct lending portfolio based on geography, loan term and type (micro-loan, mortgage, refinance, business loan etc.). This level of customization in a debt portfolio has never been available before to individual investors and I anticipate blockchain reducing interest rate expense and freeing up the exchange of capital between people and parties in the next ten years.”

Have expert insights to add to this article?

Share your feedback and we'll consider adding it to the piece!

About Sam Mire

Sam is a Market Research Analyst at Disruptor Daily. He's a trained journalist with experience in the field of disruptive technology. He’s versed in the impact that blockchain technology is having on industries of today, from healthcare to cannabis. He’s written extensively on the individuals and companies shaping the future of tech, working directly with many of them to advance their vision. Sam is known for writing work that brings value to industry professionals and the generally curious – as well as an occasional smile to the face.